Practicing Success
Which of the following analysis is included in the common size statement analysis of a company? |
AB ABC ABD ABCD |
AB |
Common Size Statements (Vertical Analysis): In this approach, each item on the financial statement is expressed as a percentage of a common base, typically a key figure such as total revenue or total assets. By using percentages, it becomes easier to compare the relative proportions of different items within a single period or between different companies. |